VAT on Barun Tax & Accounting

January VAT for Shop and Officetel Landlords: Deemed Rent at 3.1% and Tax Invoices

Mon, 26 Oct 2026 00:00:00 +0000

A general taxpayer who leases a shop or a business-use officetel files and pays VAT for July~December by Monday, January 25, 2027. There are two kinds of sales to report. For the monthly rent you receive, you issue tax invoices and report it. For the deposit you hold, you add deemed rent (간주임대료), calculated at an interest rate of 3.1%, to your sales. If you do not file the real estate rental supply value schedule (부동산임대공급가액명세서) with your return, a penalty applies.

Can't Pay the VAT Interim Notice? Payment Extension, Card Payment, and Preliminary Return (2026 Second Period)

Tue, 20 Oct 2026 00:00:00 +0000

The VAT (부가가치세) interim notice (예정고지) amount is half of the VAT you paid in the first half of the year, and the 2026 second-period payment deadline is Monday, November 2. If your sales dropped sharply in the second half, you can switch to a preliminary return by October 26 and pay only on your actual results. If you are short on cash right now, consider paying by card or applying for a payment extension. If you simply miss the deadline, a 3% penalty is added immediately.

Missed the VAT Filing Deadline? Late Filing Penalty Reductions (2026)

Thu, 15 Oct 2026 18:00:00 +0900

If you missed the VAT (부가가치세) filing deadline, file a late return (기한후신고). A non-filing penalty (20% of the tax due) applies, but it is reduced by 50% if you file within 1 month, 30% within 3 months, and 20% within 6 months. A late-payment penalty of 0.022% per day is also added for the days you paid late, so it is best to file and pay as soon as possible.

Korea Tax Invoice Deadline: Penalties for Late Issuance (2026)

Thu, 15 Oct 2026 17:50:00 +0900

The tax invoice deadline is the 10th of the month after the month of supply. If you miss it, the supplier pays a penalty tax (가산세) of 1% of the supply value (2% if the invoice is not issued by the final VAT return deadline), and the buyer also pays a late receipt penalty. If you issued an invoice by mistake, you do not cancel it. You fix it with a modified tax invoice.

Korea VAT: When Input Tax Cannot Be Deducted (Vehicles, Entertainment)

Thu, 15 Oct 2026 17:40:00 +0900

Even for business costs, you cannot deduct input VAT (매입세액) on spending with no tax invoice, entertainment expenses, regular passenger cars with 8 seats or fewer, or spending tied to an exempt business or land. Even if you paid by card, the VAT is often not deductible when the seller is an exempt business or a simplified taxpayer. If you deduct input VAT that you could not deduct, the tax is recovered later with a penalty tax (가산세).

Korea VAT Filing Schedule 2026: Deadlines for Companies, Individuals, and Simplified Taxpayers

Wed, 14 Oct 2026 00:00:00 +0000

The VAT final return is due July 25 and January 25 of the next year for all taxpayers. In the April 25 and October 25 preliminary periods, companies file a preliminary return and individual general taxpayers pay a preliminary notice. Simplified taxpayers file once a year, by January 25 of the next year. If a deadline falls on a holiday, it moves to the next business day. The second-half 2026 preliminary return is due by October 26.